Barbara Bako, Abuja.
Governor of the Central Bank of Nigeria, Mr. Olayemi Cardoso, on Thursday defended the ongoing reforms at the apex bank and warned against a return to interventionist monetary policies, saying such measures previously weakened the institution’s credibility and distorted its balance sheet.
Cardoso stated this at the opening of the Monetary Policy Committee workshop themed, “Strengthening Monetary Policy Effectiveness Towards Sustainable Macroeconomic Stability.”
The CBN Governor said the Bank’s renewed credibility over the last two and a half years had been largely driven by its disciplined return to orthodox monetary policy and conventional policy tools.
According to him, the current management inherited a system marked by weakened institutional autonomy, poor policy credibility and heavy reliance on unorthodox interventions that blurred the line between fiscal and monetary responsibilities.
He noted that the foreign exchange market was previously opaque and inefficient, while weak coordination between fiscal and monetary authorities further undermined economic outcomes.
“These structural issues contributed to rising inflationary pressures, exchange-rate volatility and a general erosion of investor and public confidence,” Cardoso said.
He, however, maintained that reforms introduced under the current leadership were beginning to yield results, citing improvements in exchange-rate stability, foreign exchange market transparency and gradual moderation in inflation.
Cardoso explained that the CBN had restored a more orthodox monetary framework, placing renewed emphasis on the monetary policy rate as the primary signalling tool, alongside stronger liquidity management and clearer policy communication.
According to him, the reforms have improved transparency, strengthened price discovery in the foreign exchange market and helped restore confidence among investors, businesses and households.
He further linked Nigeria’s growing resilience to external shocks, including recent geopolitical tensions in the Middle East, to ongoing monetary reforms and improved policy coordination.
The Governor also disclosed that the Bank is deepening institutional reforms aimed at strengthening data-driven decision-making, policy communication and governance standards as part of its medium-term transition towards an inflation-targeting framework.
Cardoso additionally described the recently concluded banking recapitalisation exercise as a product of effective policy coordination, stakeholder engagement and robust financial sector supervision.
Reaffirming the Bank’s commitment to transparency and evidence-based policymaking, he stressed that sustainable macroeconomic stability would depend on consistency, institutional discipline and continuous reforms.
Earlier, Deputy Governor, Economic Policy Directorate, Dr. Muhammad Sani Abdullahi, said the workshop was intended to promote technical exchange and collaborative engagement on monetary policy issues amid growing domestic and global economic uncertainties.
He noted that discussions at the two-day workshop would focus on policy transmission mechanisms, financial market development, analytical frameworks and institutional processes relevant to Nigeria’s economic environment.
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